Peet joined Disney in 1937 and worked first on Snow White and the Seven Dwarfs (1937) near the end of its production. Progressively, his involvement in the Disney studio's animated feature films and shorts increased, and he remained there until early in the development of The Jungle Book (1967). A row with Walt Disney over the direction of the project led to a permanent personal break.

Peet's subsequent career was as a writer and illustrator of numerous children's books, including Capyboppy (1966), The Wump World (1970), The Whingdingdilly (1970), The Ant and the Elephant (1972), and Cyrus the Unsinkable Serpent (1975).

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Bill Peet was born in Grandview, Indiana, on January 29, 1915. Peet began drawing at an early age and filled tablets full of sketches. Often, instead of doing lessons, Peet would draw the margins of his textbooks—which were very popular for their added illustrations when he sold them back. Animals were always a love of Peet's. He and his friends would go traipsing through the woods looking for frogs, tadpoles, and minnows. Most of his adventures as a boy to catch animals were in the hope that he could capture them and sketch them. The young Peet would also sneak onto greeting parties at the train station as a boy just to see the train's mechanical workings. In addition, as a teen, he would try to sketch the circus big top, but he was always in the way of the set up crew. He memorized the scene and would reconstruct it from memory.

It was about this time Peet entered into Arsenal Technical High School. At first, he had little interest in pursuing a career as an artist. However, after failing all his classes but physical education, he followed the advice of a friend and took some art classes. Peet did extremely well and experimented with a broad range of media. He eventually received a scholarship to the John Herron Art Institute in Indianapolis, where he attended for three years. In the first class, Bill found himself very interested in a girl that sat in the front row. That girl, Margaret Brunst, eventually became his wife in 1937. Peet took quite a few painting classes that first year, and he admitted his paintings were always somewhat macabre. His favorite subjects were grizzled old men, “perfected with age, like a gnarled oak tree.” Another favorite subject was the circus—but always the big tops, never the people.

Following college, Peet sent off some of his cartoon action sketches after hearing that the Disney Studio was hiring artists for their animated films. He was subsequently asked to come to try-outs. He trekked across the country to Los Angeles and participated in a one-month audition process; only three of fifteen survived the period. It was at this time Disney was working on Snow White and the Seven Dwarfs, and Peet began work towards the end of its production. After the success of Snow White, he began work as an in-betweener (making up the frames between the key drawings) on the Donald Duck shorts. However, he found the work somewhat tedious. To bring in additional income, he sent character sketches for Pinocchio to the production team. Before the verdict on his designs had come back, Peet felt like he'd had enough, and went screaming out of the studio, “No more ducks!” Fortuitously, he came back the next day to pick up his jacket and found an envelope, informing him he had been promoted to the story department.

Peet then officially began working as a sketch artist, putting the words of a story man into pictures on the film. Peet's first encounter with Walt Disney directly was at this time, when Disney reviewed the storyboards Peet had put together. Even though both his boards were eventually cut from the film, Peet continued to work on Pinocchio for another year and a half. After that period, Peet worked on Fantasia and Dumbo. When World War II broke out, Disney halted normal production, and contributed to the war effort making propaganda films. Peet helped here as well but received his big break after the war was over. His work was so impressive to Walt that he made him a fully fledged story man who also handled the sketching end of character design.

Peet started to paint again at this time, but soon found he had lost touch with the brush. Fine art had changed dramatically during the years Peet had been at Disney; abstractionism was in vogue and Peet's realistic paintings were out of date. He attempted editorial cartoons but failed there as well. Peet decided to continue working at Disney, where he developed a few short cartoons and worked on the feature films of the period. At this point, he was working very closely with Walt Disney; Peet respected Disney's creative genius but found him to be a sometimes difficult man. A large part of his autobiography is dedicated to his dealings with Disney over the years. Peet described the Disney studio as a "brutal" place, rife with rivalries and jealousy.[2] After successes developing short stories for the company, Peet had his first book published, Hubert’s Hair-Raising Adventure.

Although Walt Disney himself was not doing any animation by this time, he was in charge of the major decisions on the artistic side. He reviewed all the work and gave it the final go-ahead. As they were both strong-willed and passionately creative men, Peet and Disney quarreled frequently about parts in the films such as the dancing/romance scene in Sleeping Beauty. Peet left the company on January 29, 1964, which was his 49th birthday, following an especially heated argument with Walt on The Jungle Book.

Post-Disney, Peet turned his attention to writing and illustrating children's books.[3] Peet developed many of his ideas from bedtime stories he had told his children. Much of the success Peet's stories have enjoyed is due to the memorable themes they contain: trying when there's not much obvious hope, not allowing taunting of others to prevent individual success, finding compromise in solutions and others. Unlike most other children's authors, Peet did not dumb down the vocabulary of his stories but included enough context to make the meaning of difficult words obvious. All of his books published by Houghton Mifflin Company remain actively in print.[4]

Justin Marks, who wrote the screenplay for Disney’s live-action Jungle Book film directed by Jon Favreau, had commented that he plans to incorporate elements from Peet’s rejected screenplay of the original animated classic into the former film’s upcoming sequel:

“In the second film, the idea is to go further through the Kipling but also go into some of the Disney resources from the ’67 film that maybe didn’t get to see the light of day in the first film,” Marks said. “If you look back to Bill Peet’s work on the original film, some of which was thrown out by Walt Disney, Jon [Favreau] and I really dove deep into the Disney archives to see some of the ideas. We were like, ‘Wait, that’s a great idea. We really need that in the film.’ So we’ve built it out like that.”[6]